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The Federal Board of Revenue and the Ministry of Commerce are unaware of any decision of the federal government regarding imposition of ban on the export of gur (brown sugar - locally manufactured), as the Agriculture Department, Khyber Pakhtoonkhwa has communicated this decision to provincial authorities which is not available with the FBR/MoC.
Sources told Business Recorder on Monday that the Commerce Ministry has informed the FBR about this confusion which has been created following the communication of the Agriculture Department, KPK that the federal government has imposed ban on the export of gur. Strangely, both the Commerce Ministry as well as the FBR is not aware of the decision of the federal government to impose ban on the export of gur. A letter of the Provincial Agriculture Department, KPK has talked about the decision of the imposition of ban on the export of gur. On the other hand, such a ban cannot be imposed without amendment in the Export Policy Order of the Commerce Ministry. Thus, the situation is unclear about the exact federal authority, which has notified such decision as mentioned in the letter of the Agriculture Department, KPK.
According to the Commerce Ministry letter to the FBR, neither the Export Policy Order of the Commerce Ministry envisages any ban on export of gur nor there is a separate Pakistan Customs Tariff (PCT) Code for the commodity. No change has been made in the Export Policy Order by the Ministry of Commerce regarding its export to date. However, it is worthwhile to mention here that the Agriculture Department, Khyber Pakhtoonkhwa has communicated that Federal Government has imposed ban on the export of gur (Brown Sugar - locally manufactured). The Ministry of Commerce is not aware of it. However, the Commerce Ministry is in consultation with the provincial government to ascertain the factual position.
Meanwhile, the FBR has also approached the Collectors of Customs to follow the viewpoint of the Commerce Ministry that the Export Policy Order has not imposed any ban on export of gur. The FBR has directed the regional customs offices to follow the policy of the Commerce Ministry on the issue of gur export, sources stated.
Sources added that the letter of the Agriculture Department, KP on the issue of the 'meeting to review minimum support procurement price of sugarcane by sugar mills owners/management' has said that the Punjab government as well as government of Khyber Pakhtoonkhwa had fixed the support price of sugarcane procurement by sugar mills as Rs 150 per 40-kg. This created an annoyance situation amongst the growers/farmers in the province. At the same time the Federal Government also imposed ban on export of gur (brown sugar - locally manufactured). Agriculture Department, KP has further requested the Provincial Minister for Agriculture KP that the provincial government recommends lifting of ban on export of gur to Fata and Afghanistan in order to compensate the cost of production and to pacify the gravity of flaring situation.

Copyright Business Recorder, 2011

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